International Macroeconomics Y = C+I+G, where C=30+0.5*Y, I=100-10*r M=500-10*r+0.1*Y (Y and r are endogenous, M and G are exogenous, Closed economy) If the government increase the spending from 30 to...

International Macroeconomics

Y = C+I+G, where C=30+0.5*Y, I=100-10*r

M=500-10*r+0.1*Y

(Y and r are endogenous, M and G are exogenous, Closed economy)

If the government increase the spending from 30 to 40,

(1) calculate the fiscal multiplier

(2) change in output

(3) crowding effect